Baidu Bear Flag
Posted by Blain Reinkensmeyer
December 28, 2006 at 10:14 am
Take a look at this chart of Baidu.com (BIDU) and you can see what I am speaking of. Now, please note straight off that this is not a triangular pattern as for instance shares of Intercontinentalexchange (ICE) have setup. The reason it isn’t is because BIDU is trading under its support line, not above it.
And, with that said, the first bearish point to note is that the stock has fallen under $115ish support, closed below it, and is now trading under it. Though this is on lower volume, you still have to deal with this technical area as resistance instead of support. Secondly, you can see the downtrending channel that has begun to create itself. For BIDU to turn the corner, the diagonal line pointing downward will have to be broken. My opinion is stay away from BIDU until further notice.
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this is probably true. we will drop at new year. if you’re into short term trading you might want to check out http://www.bullrally.com
[...] Posts • Baidu Gaps Above The Channel• Market Runs to Start 2007• Daily market commentary for Wednesday, January 3,2007• Daily Commentary for Friday, December 29th, 2006• Baidu Bear Flag• MRVC Double 50 DMA Bull• Nasdaq 100 Weakness Ahead?• Daily market commentary for Thursday, Dec 28, 2006• ICE Forms Triangular Pattern• Markets Rally, Don’t Be Fooled [...]